No stimulus check and not eligible for RRC

[tkh83]

I was eligible for the first economic impact payment based on my 2019 return (not eligible on the basis of 2018 return) but since I filed a paper return for 2019 it didn't get processed until last month.  I am also not eligible for the Recovery Rebate Credit since that is based on 2020 income which exceeds the threshold.  What are my options here ? Do I lose the money ? I also have 2 kids and didn't get any child credit.

[DavidD66]

Eligibility is determined by 2020 income.  If someone was lucky enough to receive a stimulus payment and it turns out they were not eligible, they don't have to pay it back; however, there is no "look back" provision.  If you didn't receive one or more or both of the first two payments and you are not eligible, based upon your 2020 income, you won't get the RRC, nor will you receive a direct payment.  

[Hal_Al · Accepted solution]

You were NOT eligible for the first economic impact payment based on your 2019 return.

In essence, the stimulus checks were only  an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit (line 30 on the 2020 form 1040). The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount".

So, yes, you lose the money.